Brent crude crossed the $100-a-barrel mark on Wednesday for the first time since July 24, as the escalating US-Iran conflict increased concerns over oil supplies from the Middle East. 

Brent futures rose as much as 2.2% to $100.07 a barrel, while US West Texas Intermediate (WTI) crude climbed above $94 a barrel.

The latest rise came after fresh attacks in the region raised concerns that the conflict could further disrupt oil shipments. Iran-backed Houthi forces also attacked Saudi energy infrastructure, adding to fears over crude flows through the Red Sea, which has become an important alternative route to the Strait of Hormuz.

The Strait of Hormuz remains the biggest concern for global oil markets. Before the latest disruptions, around 8 million to 9 million barrels per day of crude were moving through the waterway. Recent flows have fallen below 2 million barrels per day, according to estimates cited by India Today, increasing fears of a prolonged supply shortage.

Oil prices have already risen sharply in recent weeks. Brent has gained around 25% since early August, with markets increasingly pricing in the possibility that the conflict could continue for longer than expected. Major banks have also raised their oil price forecasts as supply risks increase.

The rally in crude could have wider economic consequences. Higher oil prices can increase transportation and production costs, push up inflation and complicate interest-rate decisions for central banks. For oil-importing countries such as India, an extended rise in crude prices could also increase the import bill and put pressure on the rupee.

At around 1:31 PM on September 9, Brent was trading near $99.60 a barrel, while WTI stood at around $94.15, after both benchmarks moved sharply higher during the session.

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